🔥 While a pile of Memes went to zero, the biggest launchpad quietly burned 36% of its circulating supply—the logic behind it is worth unpacking.
According to CoinGecko and on-chain data, Pump.fun burned about $370 million worth of PUMP this week (roughly 36% of the circulating supply) and announced that it will use 50% of its net revenue over the next year for “buybacks + burns.” Meanwhile, PUMP itself has fallen about 80% from its September peak market cap of around $3 billion, and is now worth about $630 million. Daily trading volume on launchpads was around $550 million during the same period (10/11 data), cooling significantly from its early-September peak of $1.8 billion. Robinhood Chain accounted for about 52% of launch fees.
My take: PUMP is one of the few Meme-related assets with “real cash flow”—it doesn’t rely on pumping the price; it earns “rent from the casino” (launch fees) and shares it with token holders. That’s fundamentally different from pure lottery coins: one earns and distributes real money, while the other depends entirely on the next buyer. But the risks are clear, too: PUMP’s value is anchored to “Memecoin launch volume,” a highly cyclical business. When launch activity cools, the firepower for buybacks will weaken as well. And it’s already down 80%, so don’t treat that as a signal that it “has to bounce back because it’s fallen so far.”
When distinguishing real trends from pure speculation, this kind of “selling shovels and collecting rent” infrastructure often stands the test of time better than thinly traded new coins—but it’s not risk-free either.
Do you put more faith in the “collect rent and share it” shovel-selling model, or do you prefer thinly traded, high-upside new coins? 🤔
#Binance #MemeCoin #PumpFun (For observation, not investment advice)
According to CoinGecko and on-chain data, Pump.fun burned about $370 million worth of PUMP this week (roughly 36% of the circulating supply) and announced that it will use 50% of its net revenue over the next year for “buybacks + burns.” Meanwhile, PUMP itself has fallen about 80% from its September peak market cap of around $3 billion, and is now worth about $630 million. Daily trading volume on launchpads was around $550 million during the same period (10/11 data), cooling significantly from its early-September peak of $1.8 billion. Robinhood Chain accounted for about 52% of launch fees.
My take: PUMP is one of the few Meme-related assets with “real cash flow”—it doesn’t rely on pumping the price; it earns “rent from the casino” (launch fees) and shares it with token holders. That’s fundamentally different from pure lottery coins: one earns and distributes real money, while the other depends entirely on the next buyer. But the risks are clear, too: PUMP’s value is anchored to “Memecoin launch volume,” a highly cyclical business. When launch activity cools, the firepower for buybacks will weaken as well. And it’s already down 80%, so don’t treat that as a signal that it “has to bounce back because it’s fallen so far.”
When distinguishing real trends from pure speculation, this kind of “selling shovels and collecting rent” infrastructure often stands the test of time better than thinly traded new coins—but it’s not risk-free either.
Do you put more faith in the “collect rent and share it” shovel-selling model, or do you prefer thinly traded, high-upside new coins? 🤔
#Binance #MemeCoin #PumpFun (For observation, not investment advice)